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    EUCAR   FR0012789949

EUROPCAR MOBILITY GROUP

(EUCAR)
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FIRST HALF 2021 RESULTS : REVENUE GROWTH IN H1 2021, DRIVEN BY DOMESTIC AND V&T ACTIVITIES BACK TO POSITIVE CORPORATE EBITDA & CORPORATE OPERATING FREE CASH FLOW IN Q2 2021

07/28/2021 | 11:54am EDT

Press Release

Paris - July 28th, 2021

FIRST HALF 2021 RESULTS

REVENUE GROWTH IN H1 2021, DRIVEN BY DOMESTIC AND V&T ACTIVITIES

BACK TO POSITIVE CORPORATE EBITDA & CORPORATE OPERATING FREE CASH FLOW IN Q2 2021

CONTINUED TIGHT COST CONTROL CONFIRMING LOWERED BREAKEVEN

  • LIMITED CASH CONSUMPTION IN Q2 2021 CONNECT PLAN ROLLOUT WELL ON TRACK

H1 2021 HIGHLIGHTS

  • Revenue growth in H1 2021: up +3.6%1 to €842m, with a rebound of +88%1 in Q2 2021. Strong performance of domestic markets in Q2 2021, both in the US and Europe
  • Positive Corporate EBITDA to +€20m in Q2 2021 thanks to strict control of fixed and semi-fixed costs, confirming lowered breakeven
  • Limited increase in Corporate net debt as at 30 June 2021 vs March 2021: +€67m to €266m, with positive Corporate Operating FCF of +€16m in Q2 2021
  • Robust Corporate liquidity position: €447m as at 30 June 2021
  • SARF refinancing for €1.7bn, with a maturity extended from July 2021 to July 2024

OUTLOOK FOR 2021

  • Reasonably optimistic for Q3 2021, with a contrasted picture: positive pricing impact likely to continue; rebound in the Travel & Leisure segment in the US well oriented while the gradual European recovery remains more volatile and exposed to travel restrictions, due to fast-spreading "Delta variant". Overall, limited long-haul traffic expected in H2 2021. Possible impact of the shortage of semiconductor components on vehicles deliveries
  • As a consequence, the Group is not yet in a position to provide full guidance for the FY 2021. However, assuming no further deterioration on travel restrictions and extended shortage of semiconductors:
    o The Group is confident that 2021 revenues will increase significantly compared to 2020 o Corporate net debt expected in the range of €300-350m for the FY 2021
  • On track to deliver the first steps of strategic "Connect" roadmap

Caroline Parot, CEO of Europcar Mobility Group, declared:

"Over the first 2021 semester, the Travel & Leisure environment slightly improved in Europe and continued to show

healthy recovery in the US. In this context, Europcar Mobility Group recorded a rebound in revenue vs H1 2020, at +3.6%, with Q2 2021 revenue almost doubled vs LY.

In line with its cost adaptation plan to mitigate the impact of the sanitary crisis, the Group continued to manage daily operations with strict discipline, allowing for further reduction of its breakeven point and cash optimization.

1 Proforma basis: at constant exchange rate and perimeter

1

As already stated at the occasion of our first quarter publication, the roll out of our strategic roadmap, "Connect", is well on track, with significant achievements and deliveries over the course of H1, with notably the implementation of new go-to-market by Service Line, the successful launch of a very innovative, highly flexible subscription model for professionals, as well as the ramp-up of the "One Connected Fleet" program.

Regarding Q3 2021 onwards, our views remain cautious. Although we see reasons to be reasonably optimistic regarding what is ahead of us, based on a very healthy business dynamic in the US and as vaccination rates increase at a fast pace, the spread of the delta variant generates uncertainties, again.

We are nevertheless confident that we have created the operational conditions to rebound strongly as soon as the sanitary conditions significantly improve, and anticipate 2021 FY revenue to be significantly higher than in 2020, along with a Corporate net debt under control."

Europcar Mobility Group invites you to its H1 2021 Results Conference Call on:

Thursday, July 28th, at 6:00pm CET

Dial-in Access telephone numbers:

France : +33 (0)1 70 72 25 50

Germany: +49 (0)89 20303 5709

UK: +44 (0)330 336 9125

USA: +1 646-828-8193

Confirmation Code: 1076569

Webcast live:

You can watch the presentation on the following link:

https://globalmeet.webcasts.com/starthere.jsp?ei=1467355&tp_key=cda17b45dd

Slides related to first half 2021 results are available on the Group's website, in the "Financial documentation" section:

https://investors.europcar-group.com/results-center

2

TRAVEL & LEISURE IN H1 2021

The trend in Travel & Leisure industry has evolved significantly since the beginning of the year with disparities across countries, depending on governments' decisions to ease restrictions and to open up travel again, as well as on the speed of the vaccination campaigns.

In Q1 2021, the whole industry remained globally challenging in Europe with lockdowns, travel restrictions and stringent sanitary constraints. During that quarter, the US started to strongly rebound (confirmed in Q2) with domestic air traffic recovering, owing to widespread vaccination campaigns.

In Q2 2021, domestic travel in Europe slightly improved with travel restriction ease and increased vaccinated people (48%2 on average of the population aged 18+ in France, the UK, Spain, Portugal, Italy and Germany early July 2021 compared to 7% at the end of Q1 2021). But business remained constrained due to sudden and unexpected rule changes from Governments on travelling and lack of coordination across countries in Europe creating confusion among population, as the fast-spreading Delta variant of coronavirus, prompted new travel restrictions. During that period, international travel remained low.

Q2 2021 financial results

All data in €m, except if mentioned

Q2 2021

Q2 2020

% Change

% Change at constant

perimeter and currency

Number of rental days (million)

14.3

9.5

50.5%

50.5%

Average Fleet (thousand)

210.0

258.3

-18.7%

-18.7%

Financial Utilization rate

74.9%

40.4%

Total revenues

486.2

257.9

88.5%

88.0%

Adjusted Corporate EBITDA (IFRS 16)

19.7

(144.5)

Adjusted Corporate EBITDA Margin

4.0%

Operating Income

(5.7)

(178.8)

96.8%

Income before taxes

(49.5)

(228.4)

-78.3%

Net profit/loss

(46.1)

(181.2)

-74.6%

Corporate Free Cash Flow

16.2

(159.5)

Corporate Net Debt at end of the period

266.0

1 250.5

NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly

2 Source : ECDC (European Centre for Disease Prevention and Control)

3

H1 2021 financial results

All data in €m, except if mentioned

H1 2021

H1 2020

% Change

% Change at constant

perimeter and currency

Number of rental days (million)

26.0

27.0

-3.7%

-3.7%

Average Fleet (thousand)

198.7

275.5

-27.9%

-27.9%

Financial Utilization rate

72.4%

53.9%

Total revenues

842

815

3.3%

3.6%

Adjusted Corporate EBITDA (IFRS 16)

(25)

(209)

Operating Income

(90.0)

(267.2)

Income before taxes

(131.6)

(363.5)

Net profit/loss

(122.7)

(286.2)

Corporate Free Cash Flow

(83.8)

(296.3)

Corporate Net Debt at end of the period

266.0

1 250.5

NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly

No change in perimeter between H1 2021 and H1 2020. As a reminder, the last 2 acquisitions were Fox Rent A Car in the US consolidated in November 2019 and franchisees in Norway and Finland in July 2019.

4

PROFIT & LOSS IN THE FIRST HALF 2021

Management Account presentation: H1 2020 and H1 2021 accounts are presented under IFRS 16, unless explicitly mentioned

Revenue and Profit & Loss are analyzed through the evolution at constant perimeter and exchange rates. Reported changes are in Appendix.

All data in €m

H1 2021

H1 2020

% Change at constant

H1 2019 PF

% Change at constant

perimeter and currency

perimeter*

Total revenue

841.9

814.8

3.6%

1 440.7

-41.6%

Average fleet size ('000)

198.7

275.5

-27.9%

324.3

-38.7%

Rental days volume (in Million)

26.0

27.0

-3.7%

43.7

-40.5%

Utilization rate

72.4%

53.9%

74.6%

Fleet holding costs

(238.2)

(333.6)

28.5%

(380.1)

37.3%

Variable costs

(309.5)

(322.3)

3.5%

(494.0)

37.3%

Sales and marketing expenses

(6.7)

(10.3)

35.5%

(21.0)

68.3%

Fleet financing costs

(46.6)

(58.1)

19.3%

(66.5)

30.0%

Direct & variable costs

(600.9)

(724.4)

16.7%

(961.6)

37.5%

Margin after Direct costs

241.0

90.4

164.6%

479.2

-49.7%

In % of revenue

28.6%

11.1%

33.3%

Network

(125.3)

(152.9)

17.4%

(218.0)

42.5%

HQ Costs

(140.5)

(146.2)

3.7%

(186.0)

24.5%

Fixed & semi-fixed costs

(265.8)

(299.0)

10.7%

(404.0)

34.2%

Adjusted Corporate EBITDA (IFRS 16)

(24.8)

(208.7)

75.1

In % of revenue

5.2%

Depreciation - excluding vehicle fleet:

(68.4)

(77.1)

11.8%

(75.1)

9.0%

Non-recurring income and expense

(18.5)

(20.4)

(26.0)

Other financing income and expense not related to the fleet

(42.3)

(57.3)

25.8%

(76.6)

44.8%

Net financial restructuring costs

22.3

-

of w/h non-recurring impact

(13.6)

-

of w/h financial result impact (IFRIC 19 & Transaction costs)

35.9

-

Profit/loss before tax

(131.6)

(363.5)

(102.6)

Income tax

8.8

77.2

22.4

Share of profit/(loss) of associates

-

-

(0.1)

Net profit/(loss) incl. IFRS 16

(122.8)

(286.2)

(80.3)

  • Change at constant perimeter: refers to the change between H1 2019 and H1 2021. Constant perimeter includes Fox consolidated in November 2019 & franchisees in Finland and Norway in July 2019.

Variable costs: Revenue related costs, rental related costs, fleet operating costs and others

Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Europcar Mobility Group SA published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 15:53:10 UTC.


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Sales 2021 2 197 M 2 572 M 2 572 M
Net income 2021 -126 M -148 M -148 M
Net Debt 2021 464 M 543 M 543 M
P/E ratio 2021 -20,5x
Yield 2021 -
Capitalization 2 507 M 2 934 M 2 935 M
EV / Sales 2021 1,35x
EV / Sales 2022 1,12x
Nbr of Employees 8 482
Free-Float 96,1%
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Europcar Mobility Group Technical Analysis Chart | EUCAR | FR0012789949 | MarketScreener
Technical analysis trends EUROPCAR MOBILITY GROUP
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TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
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Mean consensus HOLD
Number of Analysts 4
Last Close Price 0,50 €
Average target price 0,48 €
Spread / Average Target -4,00%
EPS Revisions
Managers and Directors
Caroline Parot Chief Executive Officer & Director
Luc Etienne PÚligry Group Chief Financial Officer
Alexandre de Juniac Chairman
Damien Basselier Group Chief Product & Chief Technology Officer
Olivier Baldassari Group Chief Countries & Operations Officer
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